Turkish steel navigates trade barriers and flagging domestic demand

Ahead of the S&P Global Platts Global Metals Awards in London, on May 16, The Barrel presents a special series of articles looking at the global metals trade. Here, Pascal Dick analyzes the impact of new US tariffs, economic headwinds and other challenges on steel and ferrous scrap flows into and out of the country. After a healthy first half of 2018, the Turkish steel market now faces a drop in demand from both domestic and international customers. International policy changes and a recession in the Turkish economy have contributed to a wider trade flow diversion across flat steel products like hot rolled coil (HRC), and long steel products like rebar and billet, with some effects also due to be felt more strongly in the wider ferrous scrap pricing complex. An increase in US tariffs on Turkish steel imports from 25% to 50% in mid-August 2018 was the first factor in a longer process that triggered an intensification of trade flows. Faced with the doubling of tariffs on long and flat products that month, Turkey lost one of its main export markets for finished steel products overnight. Simultaneously, the Turkish domestic market faced strong headwinds, as at the end of 2018… continue reading

Continue reading Turkish steel navigates trade barriers and flagging domestic demand. This article appeared first on CTRM Center.

Source: CTRM Center

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